Frankfurt: Germany's top airline Lufthansa said on Thursday that it intended to shed 3,500 administrative jobs in the next few years as part of a radical cost-cutting programme.

The unprecedentedly steep cuts were intended to reduce administrative costs by a quarter, the airline said in a statement.

Cuts in staff costs overall would amount to about one third of the savings under the cost-cutting scheme announced at the beginning of the year, it added.

The German giant is undergoing an overhaul in the wake of fierce competition from budget airlines and said in February it aims to save USD 2 billion by 2014.

"We can only safeguard jobs for the long term and create new openings if we reorganise the administrative functions and accept job losses now," Christoph Franz, its chief executive, said in a written statement.

Yesterday, the group said it suffered a net loss in the first quarter of 2012 as the soaring price of jet fuel more than offset a rise in passenger numbers.

The company posted a net loss of 397 million euros in the first three months of the year, more than the 336 million euros expected by analysts polled by Dow Jones Newswires.